Chief executive Mark Wilson said the cuts, which are thought to include at least 1,000 jobs in the UK, were ‘difficult’ but ‘essential’.

In a double blow, the embattled insurer informed staff it was cutting payments for those who lose their jobs.

Currently employees receive four weeks’ pay for each year they have worked, capped at 104 weeks. From next month this will be capped at 78 weeks. And from December, employees will be entitled to just two weeks’ redundancy pay for each year they have worked.

This will not affect those losing jobs in this latest round of cuts.

Dominic Hook, national officer at trade union Unite, said: ‘The UK workforce, which is the backbone of the company has suffered job cuts, pay freezes and now faces an attack on their redundancy terms, when the company is planning more cuts.’

Wilson said the losses, which will be made over the next six months, would equate to around 6pc of its global workforce.

He is trying to make £400m in annual cost savings by the end of the year as part of efforts to get the company back on its feet.

The company (down 0.9p to 294.1p) is desperately trying to appease long-suffering shareholders after slashing dividends and posting a £3bn loss for last year.